Market Studies

According to the Fastest Markets Report issued by Redfin, homes are "flying off the market" in many places, such as San Francisco, California; Austin, Texas; and Washington, D.C. The report notes that although homes are selling faster, fewer total homes are selling. Inventory has risen in these metros, but prices are holding buyers back.

The Michigan State Housing Development Authority (MSHDA) announced during its 16th annual Building Michigan Communities Conference that it projects increases in new housing starts, rising home price, and a decline in foreclosures. "The economic and housing outlook in Michigan for 2014 is decidedly brighter than what we've seen at any time over the previous five years," said MSHDA Executive Director Scott Woosley.

Black Knight Financial Services released its Home Price Index (HPI), noting that home prices in the U.S. rose .7 percent for the month of February to an average of $233,000. The slight increase for the month reflects an overall yearly increase of 7.6 percent, according to the financial company.

According to the latest release, NAR’s Pending Home Sales Index (PHSI) rose to 97.4 last month, up 3.4 percent from February’s upwardly revised 94.2. It was the first real pickup in the last nine months, the association said. NAR’s chief economist, Lawrence Yun, said the increase was expected with the end of last season’s severe weather.

According to a report released by LendingTree, down payment percentages for 30-year fixed-rate purchase loans fell in the first quarter to an average of 15.78 percent, down from just higher than 16 percent in the last quarter of 2013. At the same time, the company found average credit scores for borrowers matched with lenders on its own network have dropped 6 percent year-over-year, opening up the credit pool a little more.

Market analysts are dialing back on their expectations for the housing sector this year following reports of continued sluggishness in what should have been the start of a busier season. Sales of both new and existing homes in March fell short of expectations, dashing optimistic projections of a rebound following the end of an unusually harsh winter.

The Office of the Comptroller of the Currency (OCC) found in a new study that the average loan growth rate has doubled among banks and federal savings associations (FSAs) in the nine states that make up the OCC’s Southern District. The OCC’s findings were from loan growth in 2012 to 2013, and reached 4 percent in 2013.

The average 30-year fixed mortgage rate came up to 4.33 percent (0.6 point) for the week ending April 24, up from 4.27 percent in the previous week, according to Freddie Mac’s latest Primary Mortgage Market Survey. Last year, the 30-year fixed-rate mortgage (FRM) averaged 3.40 percent, almost a full point lower. The 15-year FRM this week averaged 3.39 percent (0.6 point), moving up from 3.33 percent.

For four out of the last five months, single-family home sales have decreased in the Bay State. This trend is seen by some as a simple problem in availability. Timothy J. Warren Jr., CEO of The Warren Group said, "The low inventory of single-family homes in the market is the primary cause of the decreasing sales activity."

According to RealtyTrac's latest Residential and Foreclosure Sales Report for March and Q1 2014, U.S. residential properties sold at an estimated annual pace of roughly 5.2 million homes in March, a .4 percent increase from February, and up 8 percent from the previous year.